- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Corporation contributing to Retirement Plan for 1 employee
Posted on 4/10/13 at 8:40 am
Posted on 4/10/13 at 8:40 am
I am an owner of an S-Corp, and we have an employee that we would like to contribute something toward a retirement account for him. We are a contracting company, and basically we have an office staff of about 5 people and then 20 field workers. We are not interested in setting up a 401k for our entire company, but we would like to help our #1 field guy if possible.
We can't set up a 401k and exclude everyone else (or can we?), but we have thought about having him set up a personal IRA account and we could "bonus" him our contribution. We want to make sure it goes into a retirement account for him, rather than just hand him a check.
The company is not looking for a tax break on the contributions, but this employee is important to us and we want to make sure he sticks around.
Any ideas?
We can't set up a 401k and exclude everyone else (or can we?), but we have thought about having him set up a personal IRA account and we could "bonus" him our contribution. We want to make sure it goes into a retirement account for him, rather than just hand him a check.
The company is not looking for a tax break on the contributions, but this employee is important to us and we want to make sure he sticks around.
Any ideas?
3
Posted on 4/10/13 at 9:06 am to slinger1317
Give him an annual bonus for him to help him fund his own IRA.
Posted on 4/10/13 at 9:17 am to LSURussian
quote:
Give him an annual bonus for him to help him fund his own IRA.
That's where we are at now, but I was wondering if there were other options out there we weren't thinking of.
Posted on 4/10/13 at 10:12 am to slinger1317
quote:
or can we?),
Cannot do that.
quote:
but we have thought about having him set up a personal IRA account and we could "bonus" him our contribution.
You could do that. But he could also immediately withdraw the money without your knowledge.
I would have him set one up and get the brokerage firm to send you statements also as an "interested party". That way you know the money is there and working.
Posted on 4/10/13 at 12:17 pm to slinger1317
quote:
That's where we are at now, but I was wondering if there were other options out there we weren't thinking of.
Be very careful, there are laws about employees benefits and differentiating same. You really need to talk to a professional.
Posted on 4/10/13 at 2:34 pm to Blakely Bimbo
quote:
talk to a professional
You rang?
Several ideas...
You can look into some non qualified deferred comp or a section 162 executive bonus arrangment. Because the plan is non qualified it allows you to discriminate in favor of a single employee. They both have nice features depending on what the employee is looking for and can help supplement retirement savings
One question is if he is a W2 or 1099. If he is a W2 employee you can still accomplish this goal by setting up a SIMPLE IRA. It has to be offered to all employees who meet eligibility requirements, but if he is the only employee who elects to participate, then you can essentially wind up with a one member only company retirement plan. If you do not think the other employee's would be interested then this would be the way to go because as the name implies it is SIMPLE to set up.
Posted on 4/10/13 at 3:55 pm to slinger1317
the company I work for partners with a local finance company to help employees start IRAs, and automatically matches a portion of contributions to them. I think it's qualified under a SEP IRA
Per the wiki, you can't do it for just one person though. The strictest possible guidelines you can have are
I'm not sure of the turnover you're having with field workers but if it's high, most of them might be disqualified under item #2
Per the wiki, you can't do it for just one person though. The strictest possible guidelines you can have are
quote:
Employee eligibility conditions may not be any more strict than (i.e. can be less strict):
1) be at least 21 years of age
2) has worked for the employer for at least three of the previous five years, and
3) received at least $500 in compensation for the tax year
I'm not sure of the turnover you're having with field workers but if it's high, most of them might be disqualified under item #2
Posted on 4/10/13 at 4:03 pm to amsterdam
quote:
If he is a W2 employee you can still accomplish this goal by setting up a SIMPLE IRA.
This could bite him in the arse. If other employees wanted to contribute at any point.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News